Starbucks (SBUX) closed the most recent trading day at $74.14, moving -0.15% from the previous trading session. This change lagged the S&P 500's daily gain of 0.78%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 1.44%.
Heading into today, shares of the coffee chain had lost 9.86% over the past month, lagging the Retail-Wholesale sector's gain of 7.14% and the S&P 500's loss of 1.32% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. On that day, SBUX is projected to report earnings of -$0.60 per share, which would represent a year-over-year decline of 176.92%. Meanwhile, our latest consensus estimate is calling for revenue of $4.13 billion, down 39.52% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.80 per share and revenue of $23.14 billion, which would represent changes of -71.73% and -12.69%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SBUX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 35.76% lower within the past month. SBUX is currently a Zacks Rank #3 (Hold).
Digging into valuation, SBUX currently has a Forward P/E ratio of 92.32. This represents a premium compared to its industry's average Forward P/E of 41.66.
We can also see that SBUX currently has a PEG ratio of 6.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SBUX's industry had an average PEG ratio of 4.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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